we built a dashboard to shed light on ADL mechanics on HIP3 markets, esp with the silver crash end of jan liquidation on HIP3 is different than regular HL markets. HIP3 has no backstop liquidator vault, so if book liquidity is depleted in the liquidation process, it goes straight to ADL -- now HIP3 traders can calculate rank in the ADL queue for each position - how many people get ADL'd before you - how much notional the other users have (blue line) see what price might trigger an ADL - estimate how much liquidation can the orderbook absorb - evaluate the excess hits the ADL (red line)

From Twitter
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments